Investment Finance Solutions

At EMC Finance, we’ve helped numerous clients fund their investment property purchases. Whether you’re looking to buy your first investment property or expand your portfolio, our detailed approach ensures we align the right finance solution with your goals. We work closely with your accountant and financial planner to help you make informed decisions.

1. Purpose of the Investment
   Understanding your investment goals—capital growth or passive income—is crucial. This is one factor that helps determine whether an interest-only repayment structure or a principal-and-interest option is more suitable. Collaborating with your accountant, to make you aware of the tax implications of each option.
2. Ownership Structure
   Should the property be purchased in your name, through a trust, or via a company? Ownership structures can have significant tax and financial implications, which is why consulting with your accountant is essential. We’ll help identify suitable finance products tailored to your structure.
3. Contribution Method
   Are you funding the purchase using equity from an existing property, cash contribution or mix? We take a holistic view of your circumstances to determine the funding solutions available to you.

A critical decision when financing an investment property is choosing between interest-only and principal-and-interest repayments. Here’s how they differ:

Interest-Only Repayments

• Typically have slightly higher interest rates.
• Limited term for interest-only, followed by an automatic switch to principal-and-interest repayments for the remaining loan term.
• Potential tax benefits, which should be discussed with your accountant.
• Higher total interest paid over the loan term, as the principal amount remains unchanged.

Principal-and-Interest Repayments

• Gradually reduce the loan balance, building equity over time.
• Generally, have lower total interest costs over the life of the loan as the loan is decreasing.

Use our Loan Repayment Calculator to explore the differences between these options.

Deciding on the entity to hold your investment property is another key consideration. Lenders treat entities differently, which can impact:

• Tax implications: Ownership structure can affect borrowing capacity due to tax outcomes & costs associated with different entities.
• Capital requirements: Different entities may have varied equity or cash contribution requirements.
• Rates and fees: Lenders may offer different terms depending on the holding entity.

We work with you and your accountant to identify the best structure and ensure the selected finance product meets your needs.

Your funding strategy can significantly impact your investment loan options. Whether you plan to use equity from an existing property or cash contributions, EMC Finance assess your full financial situation to understand your available options.

At EMC Finance, we understand the unique needs of property investors. With years of experience assisting clients across Australia, we’re here to simplify the process and provide tailored finance solutions. Whether you’re taking your first step into property investment or adding to your portfolio, we’ll provide a informed approach to your finance needs.

Ready to explore your investment finance options?
Contact us today to discover what’s possible.